Distributor Finance is a mode of financing in which the financer makes payment to the Manufacturer/Principal of goods on behalf of its distributors and the distributors after a certain credit term pays the money back to the financer. It is a revolving short term financing facility that enables the distributors to take advantage of cash purchase and source higher amount of goods that helps them to do business in bigger volume and thus earn higher profit. It requires involvement of 3 parties, namely: